Daily Read - 1/26/10

Obama is expected to propose a three-year freeze on discretionary federal spending. I hope he means it.

"Nearly three out of four Americans think that at least half of the money spent in the federal stimulus plan has been wasted, according to a new national poll," reported by CNN. Also, "4 percent think that no stimulus dollars have been wasted." Really? 4% of Americans think the government could spend hundreds of billions without wasting anything? Even Warren Buffett, an Obama supporter knows the stimulus bill was "8000 earmarks or something".

Apparently Obama believes in his own cult of personality. Politico reports comments made by retiring Rep. Marion Berry (D-Ark) that Obama thought Democrats could pass health care and not face political consequences because "Well, the big difference here and in ’94 was you’ve got me."

"More than 300 people and groups have sued the Obama administration fighting to get federal government records in the year since President Obama pledged his administration would be the most open in history" (Washington Post)

Reuters reports that New Jersey's Treasury Department "should be freed from union constraints that hobble its operations." "New Jersey's pension fund is the only one in the nation barred from hiring outside fund managers under a court settlement that unionized workers won."

Thomas Sowell says "If politicians can't do anything else right, they can count votes." (RCP)

David Brooks says "Ever since I started covering politics, the Democratic ruling class has been driven by one fantasy: that voters will get so furious at people with M.B.A.’s that they will hand power to people with Ph.D.’s. The Republican ruling class has been driven by the fantasy that voters will get so furious at people with Ph.D.’s that they will hand power to people with M.B.A.’s. Members of the ruling class love populism because they think it will help their section of the elite gain power." Then he argues that the US was founded by "anti-populists" who "rejected the zero-sum mentality that is at the heart of populism, the belief that economics is a struggle over finite spoils." (NY Times)

Richard Thaler, writing in the New York Times, wonders why so many Americans who owe more than their home is worth "are dutifully continuing to pay their mortgages, despite substantial financial incentives for walking away from them." Despite using the word "duty" in this sentence, he goes on about why the default rate isn't higher.

Obama's plan to let employees automatically enroll in direct-deposit retirement accounts and expand matching tax credits may meet resistance from small businesses. Many small businesses are struggling in this economy, and this program would create a new cost and administrative burden for them. Also, “I don’t know that there’s been enough thought to how certain small businesses, restaurants in particular, would comply with this if they don’t use a payroll company or participate in direct deposits,” said Molly Brogan, vice president of public affairs for the National Small Business Association. (Bloomberg)

However, Apple continues to make tons of money, demonstrating that some people can still afford really expensive products, even in this recession.